Tag: DMS

Yes, You Still Have Inventory Issues

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Inventory acquisition challenges were a huge headache last year. And, as luck would have it, they are a pain in the neck this year. Unfortunately, this industry-wide problem is still having a profound impact on profitability. And while some dealers are choosing to “wait it out,” smart dealers are finding strategic ways to succeed now. We’ve pooled the data from the past eighteen months that looked at best practices from thriving dealerships and practical solutions for inventory challenges. The resulting five operations strategies will help you and your entire operation overcome your inventory obstacles and supply chain challenges before it’s too late.

Operational Strategy 1 – Aim for Departmental Cooperation

Your target? Tear down the traditional silos creating division, confusion, and disconnection! Your best tools for this strategy are going to be communication and data to spot opportunities, target trade-ins, and acquire vehicles. Ask yourself, are you potentially missing opportunities because you’re not collaborating across teams? 33% of thriving dealerships use cross-departmental data to spot opportunities.

Operational Strategy 2 – Adjust Your Processes

It’s time to make a plan. Inventory acquisition goals need to be tied to details about pay structure and approaching customers. Rethink your current pay structure and set new, and exciting, goals around bonuses to help drive acquisitions for all team members who play a role in the process.

According to research from Cox Automotive, 50% of thriving dealers utilize activity tracking for customer web and search history.

Operational Strategy 3 – Create Useful Reports and Measure Analytics

The information you’re tracking can help your dealership succeed. According to research from Cox Automotive, 50% of thriving dealers utilize activity tracking for customer web and search history. Don’t just rely on your gut—use data to determine which used vehicles are in high demand. Then, share the data with your team to be on the lookout for these cars when they come across your service lane.

Operational Strategy 4 – Time to Team Up!

In addition to the very frustrating and very real issue of inventory shortages plaguing your business, you still have to deal with…well, your business. Retail automotive often faces more than one challenge at a time (like keeping your top talent and fighting the data war). So, your best bet is to partner with a provider who has your back. If you’re going to improve your numbers, make sure you’re working with an expert who can help you optimize your reporting and get to know your technology inside and out.

Operational Strategy 5 – Think Big(ger)

A simple shift in approach may not hit the mark. To overcome the challenge of inventory shortages, you’ll need to get your marketing, sales, service, and operations in sync. Cox Automotive delivers first-party transactional data from Autotrader and Kelley Blue Book allowing you to connect workflows across all departments. This dealership-wide approach ensures your entire business is protected from this—and the next—challenge.

To learn more about these strategies and other tips for acquiring inventory, check out our guide, “Operational Solutions for Inventory Challenges.”

 

 

 

Run Your Business Your Way with a Flexible DMS Partner

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by Randy Wilson, Director of Performance Management

The past few years have only accelerated forecasted disruptions in automotive retailing. Today, you’re being tasked with driving success in the face of tight inventory and increased competition. Tomorrow, it could be—and will inevitably be—another challenge. It’s the nature of our rapidly transforming industry. Day-in, day-out, though, your primary goal is to maximize your efficiency in sales, marketing, fixed ops, inventory management, accounting, and operations in ways that give you an edge. If there is a connection failure with even one area it’ll cause your dealership process to fail and waste your team’s time. Even worse? It all lands on your customer’s lap in the form of slow processes and a poor experience. All that work your team put in to build a top-notch experience and win-over new customers will have been for naught.

An often invisible pain point, right under your nose, could be the very system you rely on to drive your entire business operation—your DMS. If your dealership runs on a rigid system designed to grow the bottom line of the vendor, not dealership, you could be headed for trouble when the next ‘disruption’ impacts our industry. No doubt you know the best way to run your business. But are your vendors giving you the flexibility to run your business your way? A flexible DMS isn’t just a nice-to-have. It can make or break your dealership’s operations. Failing to partner with the DMS provider that best aligns with your unique goals exposes you to unnecessary costs, risks of operational inefficiencies, and bottlenecks, not to mention hidden fees, integration costs and endless contract terms.

Advanced dealers understand their success relies on efficiency gains from connected and coordinated systems. These systems enable reliable, affordable connectivity with best-in-class solutions across sales, marketing, fixed ops, inventory management, accounting, and more. Let’s break down what you should be looking for (and expect) from your DMS and how the whole is greater than the sum of its parts.

 

Platform Flexibility

In an age of online retail, third-party integrations are more important than ever in dealership software. You know it, and your software providers know it. Third-party integrations let you streamline interfaces and enable the flow of data freely between systems, which reduces human error and costs and increases profits. Integrations also let you track your buyers online and build a better shopping experience across platforms.

Real-time, bidirectional technology integrations enable a seamless online-to-in-store buying experience and allow you to work with who you want. In other words: you can select the software you want. You can continue to use the CRM you prefer because it connects to the DMS you select, for example. You don’t have a vendor telling you that you ‘have to’ use their preferred provider. You can set up a workflow for your employees that makes sense, without frustrating interruptions, and create a smooth customer experience as well.

Opentrack, our third-party certification program, ensures you can integrate seamlessly with nearly 200 world-class automotive partners without heavy penalty. This flexibility keeps you in control of your data and your destiny. By being able to customize your DMS to best meet your needs, you can run your business the way see fit.

Simplified Accounting and Reporting

There’s now a way to maintain greater control with modern accounting, payment, and reconciliation processes that deliver actionable business insights that drive informed decisions and growth. Our payment solutions, for example, are powered by an integration with Global Payments for streamlined payment and accounting processes for you and your customers with features like digital A/R statements and service invoices, flexible payment options, card-present transaction solutions, automatic GL writeback, and more.

Simplification should also extend to your payroll and HR functions. Powered by a real-time integration with Netchex, our solution simplifies HR and payroll needs, including processing and administration, and HR and human capital management, reducing costly errors and freeing your team to focus on more meaningful HR activities. The solution also features two new reports supporting end-of-month accruals and technician productivity.

Coordinated Business Office

While satisfaction with interactions with finance has increased, your shoppers are probably still frustrated with the length of time it takes to complete the buying process. Integrations with new Bureau and DMS providers and workflow enhancements mean you can close deals anytime, anywhere with ease through automation and digital signing tools that will help maximize profits and delight customers.

Efficient Fixed Operations

Your car dealership is likely several businesses under the same umbrella. And when siloed? Your business will struggle. Even though parts and service departments are the lifeblood of dealerships, they generate just a fraction of the industry focus given to new or used car sales. That’s troubling because parts and service departments deliver a consistent volume of business and profit, year after year. Just imagine what your parts and service could do with a little more attention. Our approach is to help you standardize and modernize parts and service procurement processes; streamline functions and systems; and use strategic integrations to automate tasks, speed up workflows and reduce the risk of error.

New to our DMS solution are four important enhancements that can really bolster your efficiency:
  • The Parts Management Toolkit streamlines and digitizes parts ordering and management processes.
  • The Inventory Aging Tool automatically identifies obsolete and at-risk inventory and eliminates the need for multiple reports or large dumps of DMS data.
  • Parts Order Reconciliation reduces stock ordering time by up to 40% with centralized and simplified interface.
  • Parts Order Templates ensure data accuracy and reduce the time it takes to order parts by up to 70%.
Experienced, Hands-On Support

In the new age of online and in-store sales, a DMS that offers outstanding customer support and trusted partnerships matters just as much as, if not more than the technology itself. A DMS that comes ready equipped with a Performance Manager — an experienced industry expert, who understands how to leverage technology to interpret data and make tough decisions — can help you achieve their business objectives and ensure profitability and growth.

Working together with DMS support teams, our Performance Managers can offer a personal point of contact to deliver training, feedback on areas of opportunity, and tips and tricks that go well beyond traditional tech support. Our Performance Managers average 10+ years of dealership experience and come standard with every Dealertrack DMS partnership.

Named Dealers’ Choice for Best DMS in 2020 and 2021, Dealertrack DMS is backed by Cox Automotive, giving you the security of an experienced partner that understands your business challenges, is dedicated to your success, and is motivated to earn your business every day.

It’s the flexible solution that lets you, not the DMS provider, dictate how best to run your business.

About the Author | Randy Wilson

With over thirty years of experience in the retail automotive industry, Randy Wilson brings exceptional wisdom to his role as Director of Performance Management to the Dealertrack DMS team. By leading a team of Performance Managers who have all previously held high-level dealership responsibilities in their careers, he is committed to driving rapid transformation and building measurable growth for our partners. Randy joined Cox Automotive in 2012 and works tirelessly to bring real-world experience into the development of technologies that enhance the day-to-day performance and efficiencies of every aspect of the business. In his spare time, he can be found sporting his Cheesehead gear and spending any spare moment boating and fishing on the ocean. He and his wife have four children together and five grandkids.

Keep Track of Dealership Performance with a Flexible DMS Partner

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It’s the beginning of a brand new year—and that means many of you are likely in goal-setting mode. With a challenging 2020 and 2021 behind you, how are you planning on achieving profit growth? Inventory shortages are here to stay. And dealers still face staffing and hiring challenges as recent reports show that we’re roughly 3.6 million jobs below February 2020’s numbers.* If you’re not utilizing your dealer management system to track your business’s performance—and to identify actual steps for improvement—I can help. In fact, your DMS is where you should start before you go too much farther. Here’s how to utilize the DMS to track, optimize, and improve the performance of your dealership.

The Dealer Management System and Data

The DMS running your business is like a giant calculator working behind the scenes, generating data, and keeping track of your business’s performance. And once you learn how to tap into that data and uncover its potential, you can unlock the hidden potential of the DMS that allows you to make the decisions that steer your dealership toward profitability.

Small Steps Add Up, Big Time

When it comes to goal-setting, again, the start of the year tends to be primed for big goals like “increase profitability.” The problem with a broad, or even vague goal, like “make more money than last year,” is that businesses often make bold changes (see: unsustainable) to attain them. There are actually very small steps that you can make, on a day-to-day basis that empower your managers, service staff, and the entire organization to improve performance.

Know Your Numbers

It all begins with knowing your numbers, what they mean, and discovering ways to improve them. When I work with my dealer partners, I always take a look at a dealer’s Gross as a Percentage of Sales. Your Gross Profit as a Percentage of Sales is one key metric that will help you understand how you’re performing. Take a look at the graphic below:

 

Simply put, Gross Percentage reflects how much money is retained on a dollar sold. For example, a dealer with a 65% Gross Percentage, earns $65 of Gross Profit on a $100 sale. If you could improve that metric to say 70%, you’d keep an extra $5 per $100 sold. (Do the math on how many dollars in sales you do, in any given time period, and it starts to add up fast!) Easy right? Well…maybe not easy. But, it’s well worth the effort.

Now You Know. Here’s How to Improve.

So let’s look at some ways to improve Gross as a Percentage of Sales. Starting with the report pictured above, and following the five basic steps outlined below, your DMS has the data you need to set actionable goals.

  1. Know your current Gross Percentage – Dealertrack DMS users can find this data easily in your Dealertrack DMS DOC’s or Labor Profit Analysis. (Ask your Performance Manager to help you if you’re lost.)
  2. Set a realistic and attainable goal – Process and profitability improvement is not a quick and constant fix. It requires attention and effort, so aim for modest initial improvements and continually move the bar.
  3. Communicate often – Help your team understand why you’re trying to improve, what the goals are, and what the overall benefit will be. This can help generate buy-in and improve effort from all team members.
  4. Track and measure performance – Identify low Gross Percentage RO’s through consistent reviews of Labor Profit Analysis in the DMS. Don’t wait until the end of your quarterly business review to find out you have an underperforming department or team member.
  5. Analyze performance to improve – Understand the root cause of low performance and develop strategies around them. Do you have a lack of skills training that could help a team member improve performance?

To improve Gross Percentage, you must find ways to improve the gap between cost and sales. In an already highly competitive market, this may mean improved dispatching processes, eliminating single line RO’s, managing discounts, or other techniques catered to your needs. The key to any of them is focus. Stay focused on the objective, give it the attention it deserves, and watch your numbers soar!

Run Your Dealership Your Way

Ultimately, the way you run your dealership business is, well, your business. And the technology providers you choose to partner with should be just that: partners. If you don’t have a flexible partner in your corner helping you unlock the data you need to further your goals, it may be time to find a new one. As a Dealertrack DMS Performance Manager, it’s my goal (and my job) to ensure you and your entire team are optimizing the technology driving your dealership. If you’re heading to Las Vegas for this year’s NADA Show, my team of dedicated industry professionals will be on hand to showcase all the ways our DMS, backed by Cox Automotive, can help.

Are you going to NADA Show 2022? Our team has several new enhancements and integrations designed to streamline Sales, Marketing, Service, and Accounting—don’t hesitate to book your demo today.

About the Author | Michael Panozzo

Michael Panozzo is a Senior Dealertrack DMS Performance Manager who works with dealerships to maximize DMS utilization and drive process and profit improvement. Michael came to Cox Automotive in 2016 after a 15-year career working in and managing auto dealerships where he honed his skills in operational excellence.

 

 

 

 

 

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*Hireology Report: December BLS Jobs Report: Prioritize HR Investments

Tips for an Ongoing Inventory Crisis Plan

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Sometimes, a threat emerges that takes everyone by surprise. You may have handled the past two years very well—and high customer sentiment is proof—but an ongoing inventory crisis is testing dealers like never before. So, what do you do when your lot is looking bare, your inventory is lean, and you can’t sell your way out? With car volumes at 43% below 2020 levels, it’s time to formulate a plan.

Tip 1: Use Data to Make Inventory Decisions

You’ve been in business long enough to understand the value of data when making important decisions. Data can help you know where to look for cars, which models to go after, and how to price used inventory. The data that your dealership already has on its previous sales and on shopper interest—search volumes on your own website, for example—will teach you which used cars are most popular and which could be most profitable.

Tip 2: Source inventory From Everywhere

Armed with the knowledge of which cars are in demand, you can use your database and your customer records to find current owners of those cars who might be motivated to sell. Specifically, look at upcoming lease expirations and reach out early to begin discussing trade-in options. You can also find inventory by mining recent digital retailing leads with trade-ins attached. Finally, look through your database of existing customers for repair-weary owners who might be ready to sell—those who have recently made service appointments or declined service recommendations, for example.

Tip 3: Rethink Your Marketing

During periods of lean inventory, many dealers decide to cut back on advertising or cut it out altogether. While it might be tempting to try and save some marketing money while you have fewer cars to sell, the strategy generally backfires. In fact, companies that cut their advertising during the pandemic saw a 7% drop in leads while those that continued saw a 2% increase. Instead of eliminating your ads, focus on adjusting the message to focus on vehicles with more availability. You can also pivot your promotions to cover used inventory, vehicle service, and “we’ll buy your vehicle” campaigns.

By now, you’ve learned to deal with just about every challenge this industry could possibly throw your way. The current inventory shortage, brought about by global supply chain disruptions, is also nothing you can’t handle. By following these tips, and by getting a little bit creative, you can develop a cross-departmental strategy that keeps your profits high even as inventory is low.

 

To learn more dealership survival tips, including more information about how top dealers are thriving in today’s environment, download our eBook, A Dealer’s Guide to Dealing with (Almost) Everything.

 

 

5 Steps for Dealing with Lockdown Markets

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Necessity is the mother of innovation. It’s the proverbial catchphrase of progress, and in the past 18 months, it’s practically become the new motto of automotive sales. When dealers are put in difficult situations—pandemic-imposed lockdowns, for example—many are forced into survival mode. Yet, a revealing look back at the 2020-2021 year in automotive revealed something fascinating. Many of our thriving dealer partners who embraced the quick shift to digitization (up to 83%) said the changes made now were creating long-lasting, positive results. In other words, the change may have been swift, but there’s simply no going back.

Things may have settled a bit—for the time being—but there’s no telling what’s in store for the future. When the next big digital shift hits hard and fast, will you and your business be ready to lock down and make those difficult decisions once more? Based on the data and feedback from our thriving partners, here are five steps for dealing with the next lockdown market.

1. Go Digital

The move to digital shopping, servicing, and even inventory management is changing. Your dealership depends on data from your DMS to manage everything from payroll to parts inventory to Tech Time. Yet, for many franchise operations, these systems can be disconnected, with multiple data entry steps, slow upload processes, and manual re-entry. While switching over to a new system may seem overwhelming at first, leveraging the assistance of a reliable partner (not just a vendor) to ensure you’re connected goes a long way. Going digital is a no brainer, for your customers at least. But, going at it alone? That might be a bad move.

“A DMS is such a critical part of the dealership, and choosing Dealertrack DMS was a no brainer… But the number one thing for me, hands down, is the fact that Dealertrack DMS comes with a Performance Manager.” — Matt Garner Dealer Principal, Downtown Auto Group

2. Brand Your Digital Presence

As more and more dealerships adopt digital technology, implementing new technology tools alone isn’t enough. You have to find a way to differentiate your offerings from all the rest. Your dealership has its own reputation, identity, and brand. And you’ve worked hard to establish that identity. Therefore, your online presence should also encompass its own name, logo, and visual identity. Remember, your online presence should be grounded in your core brand. But allow your online presence to exist as its own entity by adding the word “Online” or “Direct” after your dealership’s name.

3. Have a Strong Online and Social Media Presence

Leverage your social and online presence to convey closures, updates to holiday hours, and safety regulations. Use your platform to share important information with your consumers, including (and perhaps most importantly) about how they can continue to do business with your dealership. Take time to make sure your Google information has up-to-date store hours and that everything a prospective customer could find online about you matches. Nothing is more frustrating than conflicting customer-facing information about how, when, and where they can contact your dealership.

4. Offer Convenience Services

Lockdowns don’t just impact car sales. The service side of your business needs to make big changes too. When consumers are concerned about health and safety, they place greater value on convenience services like service pick-up and drop-off, rideshare, and loaner vehicles. Think about services that increase value to the customer, and spread the word about your digital service offerings. On the car sales side of things, offer convenience solutions that are on par with your in-store offerings. Home deliveries, for example, should involve a delivery person that can give your customers the same superior vehicle handoff experience they get at the dealership.

5. Facilitate Remote and Online Services

Even during lockdowns, the hiring and onboarding process must go on. It’s possible, even probable, that this process will be accelerated during a lockdown market, which can present problems. With technology that enables you to complete more of the paperwork and onboarding process remotely, however, your employees can hit the ground running and be more productive right out of the gate. This concept also applies to your customers. A DMS that gives your customers more online options, including facilitating faster service pick up and drop off, better communication (texting the status of car while it’s being serviced), and a faster sales process, you can work around restrictions and still give customers the experiences they want.

The necessity of recent lockdowns, and the possibility of future ones, has paved the way for industry innovations that are here to stay. The future is now, and there’s no going back. Top dealers are taking advantage of the “new normal” to implement new technologies and practices that will shape the future of the industry, while seeing real benefits in present day.

 

To learn more dealership survival tips, including more information about how top dealers are thriving in today’s environment, download our eBook, A Dealer’s Guide to Dealing with (Almost) Everything.

 

 

Don’t Fall Behind: Keep Up with Today’s Digital Consumers

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Did digitization change the way buyers interact with your dealership? Or have today’s buyers—and their shifting habits—altered the course forever of the retail automotive process? Time may tell but for now, one thing is clear: a failure to adapt will cost you sales, service clients, and team members! Don’t go ‘the way of the dodo.’ Keep up with thriving dealers and follow the advice below.

Embrace a Hybrid Approach

In the past 18 months, the trend toward shopping for cars online has been dramatically accelerated. In fact, two out of three customers are more likely to buy a vehicle 100% online, according to the 2020 Cox Automotive COVID-19 Digital Shopping Survey. Still, your dealership can’t simply switch to an all-virtual model without leaving a significant portion of your existing customer base behind.

To satisfy both sets of customers, embrace a hybrid car buying approach. That means giving customers the choice to complete as much or as little of the car buying process online as they want. This gives your customers the best of both worlds, while also offering some mixture of in-person and online buying.

According to a recent Cox Automotive research study, the vast majority (84%) of top dealers (those dealers that have become both more profitable and more efficient since the start of the pandemic), say that offering more digital options to customers is critical to retail success. That’s compared to just 64% of static dealers.

Align Communication Channels with Consumer Preferences

As your dealership keeps pace with modern shoppers, it’s important to adapt your communications channels as well. As evidenced by the shift to more online shopping, the car-buying consumer tends to gravitate toward convenience. In communication, that convenience includes more emails and text messaging and fewer in-person visits and phone conversations.

Just like adopting a hybrid car buying approach, give your customers options by providing a variety of communications channels. Cater to customers who want to text and email just as you would to those who prefer more traditional communication. The transition to a digital-centered sales processes inevitably includes embracing these modern communications channels. And the change might be easier than you think.

According to How to Thrive: Best Practices for Accelerated Digital Landscape, 68% of thriving dealers say that it’s been easier than they thought to adapt to a more digital-centered sales process, compared to only 34% of static dealers that felt the same.

Use Data to Discover New Opportunities

As more and more customers shop for and buy cars online, they leave behind data about themselves (and about the industry’s direction) that can help you see new opportunities. As your dealership makes changes to adapt to modern customer preferences, don’t forget to monitor your data.

Watch carefully for trends that can identify new opportunities for earning profit. Have the courage to trust your data enough to pursue those opportunities once they’re found. It can mean the difference between thriving to find additional profit and additional customers, or staying stuck in the past.

The car-buying consumer can be hard to track, but if you have the right tools, processes, and the right information about your customers, you can anticipate their next moves and be ahead of the curve for the next big buying trend. To learn more about surviving and thriving in a new digital landscape, check out our eBook: Thrive and Survive: A Handbook for Dealing with (Almost) Anything.

 

Learn how to thrive against the competition with the new guide, Thrive and Survive: A Handbook for Dealing with (Almost) Anything.

 

Run Your Dealership Your Way

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When it comes to data, it’s not just about what you know, accuracy, access, and speed matter as well. Battle lines have been drawn, and dealerships with access to faster customer data are winning the competition for modern customers. Does your DMS partner work to provide flexible reporting options and role-specific dashboards, helping you access, manage, and protect your dealership’s data? Let’s take a look at how to deal with data management and your DMS and technology partners below.

Keep Your CRM Data Up to Date

Keeping data up to date doesn’t sound like anyone’s ideal job description, especially salespeople who are busy interacting with actual customers. But to succeed in today’s digital world, ongoing data housekeeping is an absolute must. In fact, 75% of thriving dealerships proactively keep their CRMs updated.

Make sure your customer records are up-to-date and filled with as much first-party data as possible. And, there’s some good news for salespeople (and everyone else)—comprehensive technology integrations allow your systems to communicate with each other. These integrations can automatically record customer interactions, eliminating a lot of manual labor and data entry.

Leverage Cox Automotive Data

Your dealership’s own data can only take you so far. It’s certainly helpful, but it’s also limited to the interactions you’ve had with your specific customers. Cox Automotive data, touch 75% of vehicle transactions in North America—that’s 3 out of every 4 buyers—giving you access to a world of customer information.

With brands like Autotrader, Kelley Blue Book, and Dealer.com, Cox Automotive data can help you know where customers are shopping, what they’re looking for, and when they’re ready to buy, giving you a significant advantage in the competition for customers.

Partner with a DMS that Doesn’t Restrict Data Access

Who really owns all this data anyway? It’s a hot button topic in today’s digital industry, and opinions vary from person to person, and even from technology provider to technology provider. Some providers restrict your data under the guise of customer privacy. Others take your side and support your rights to your use your data.

As the competition for online customers ramps up, you want a technology partner that doesn’t restrict your access to your data. You want a partner that can help you segment your customers lists, target shoppers and personalize messages. In short, you want a partner that can help you win deals. It’s no surprise that the vast majority of thriving dealers (86%) agree that having accurate and complete customer data is a top priority.

Give Your Dealership Some Muscle

Whatever your position at the dealership, having clear insights into the future outlook of your business is no longer just a ‘nice to have,’ it’s critical. Get the data you need delivered to your team in fast, clear, and easy-to-decipher reports and dashboards with Critical Analytics using the data directly from your DMS.

As buying preferences shift and the industry evolves, the more you know about your customers, the better off your dealership will be. Data is the future of the industry, and the future is now. Win the war on data (and partner with a technology provider that can help manage and fight for your data rights), download Thrive and Survive: A Handbook for Dealing with (Almost) Anything.

 

 

Learn how to thrive against the competition with the new guide, Thrive and Survive: A Handbook for Dealing with (Almost) Anything.

 

Thriving in a Competitive Market

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In your line of work, it’s not enough to merely outlast the competition. When it comes to retail automotive, a willingness to adapt to new trends and pivot on a moment’s notice can make all the difference. You’ve probably seen it—the strong thrive and the weak struggle to survive. Now, as buying options expand beyond the showroom, the world of automotive retail is becoming more competitive than ever. There’s no room for dealerships that aren’t willing to evolve. It’s a dog-eat-dog industry and your biggest threat comes from your competition, as well as your own decisions to keep up with modern customers. Here’s how to deal with an increasingly competitive market.

Differentiate Your Dealership

As more shoppers go online to research and buy cars, it’s easy for dealerships to blend in with the crowd of competition. Your customers can go anywhere they want, so give them a compelling reason to buy from you. Differentiation can take on many forms—you can stand out based on your business model or brand promise, for example. Just make sure that whatever you decide, it’s authentic. Not sure where to start? Look to your original company values to start. What got you into this business? Are you here to help serve people one-to-one? Talk to your vendors and ask them to step in and meet you here, first.

Exploit Competitive Advantages

As you look for ways to differentiate your dealership, you’ll probably find a whole list of things that you do better than your competition. That’s great. These are your competitive advantages, and you should find fun, creative, and strategic ways to tell your customers all about them. Sit down with your dealership’s leadership team to discuss what you do best. Talk about the weaknesses of your competition and how you may be able to make improvements to find new competitive advantages, whether in your sales team, your location, your online presence, or all of the above. Once you have your list of advantages, discuss how to best use them for your benefit.

Adopt Technologies That Differentiate

When you get started, begin by creating a competitive advantage with your technology tools. If you’ve recently implemented technology at your business, or if you’re considering a switch, conduct an audit on the integration points between your tools, technology, and processes. This may seem like a big ask—and it may be—but connected technology should serve to boost the way your business runs. If it’s not helping your people succeed, and improving the customer experience, then it’s likely slowing you down.

You have some big decisions ahead. Adapt and thrive. Or, keep struggling to fight against your competition. Set your business apart with better tools, interconnected technology, and a customer experience that keeps people coming back.

Learn how to thrive against the competition with the new guide, Thrive and Survive: A Handbook for Dealing with (Almost) Anything.

 

An Interview with Netchex: Understanding Modern, Integrated Payroll

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Better payroll is a critical need for dealers. But many are settling for solutions that limit their ability to process payroll efficiently, forcing tradeoffs, and keeping teams from more meaningful HR activities. In addition, many dealers sacrifice payroll efficiency simply due to the fear of change. We sat down with Will Boudreaux, CEO of Netchex, to help our dealer partners understand how a modernized, integrated payroll solution can help as year-end approaches.

Why Now?

Q: With year-end approaching, many controllers who might want to upgrade their payroll solution might be concerned about timing. Why is now a good time to act?

A: Businesses must determine the best time for a change considering other initiatives and priorities. But a start at the beginning of a calendar year is for sure an optimal time when considering a payroll migration. Clients like the clean break between years – allowing their prior system to keep balances and reporting items whole and take advantage of the resetting of liabilities, accumulators, PTO plans, and the like with the new year. Additionally, it’s less data transfer between systems making it easier for all parties to have a successful launch. Finally, a new year allows for new initiatives. Clients like to use the migration to Netchex to kick off things like Self Service, Benefits Administration, or introducing new processes for handling historically manual tasks like PTO requests or performance reviews. A new year provides a great time both from a liability break and process improvements.

Will Integration Really Help?

Q: Could the integration between Dealertrack DMS and Netchex’s payroll platform actually make year-end reporting easier at my dealership? How?

A: Well – it depends. If Netchex takes over the processing of your payroll prior to the year ending, we’ll also handle all year-end reporting like W2s, 1099s, and 1095s. Additionally, we’ll file taxes for each quarter that a client is with us during that year as well as all year-end tax reporting.

Why Netchex?

Q: We give our Client Partners the option to choose other third-party solutions to manage HR and Payroll functions. So, then, why should dealerships partner with Netchex versus another third-party vendor? What is the true key benefit of the Dealertrack integration? How are we leveling up?

A: Netchex and Dealertrack DMS recognize there are alternatives in the HCM space other than our solution. We spent a lot of time discussing ways to differentiate and it really starts with the integration. Being able to have support from both parties to ensure bi-directional data flow is a huge win for our shared clients, especially when it comes to tech time and commissions. Plus, they love the employee mobile app that gives their teams direct access to all their data. Additionally, Dealertrack has educated Netchex on the small details that make a successful dealership run and we have ingrained many of those practices in our solution – tasking with reminders, pay policies, PTO policies, manager functionality for access to employee activity, handling 941’s – those are just a few examples of our understanding of the dealer space. Dealertrack DMS also has set a high bar for service and as such, Netchex delivers on that level. The reality is many companies might be able to get associates paid but nowhere near as efficient as our offering. In reality, Netchex benefits add up in time savings and liability. Our partners report that:

  • The employee portal access is a time saver.
  • Tasking and reminders to employees and managers are huge time-savers.
  • They do not want the tax liability; most controllers love that they don’t have to do the 941’s/year end reporting, Cobra etc.
What does the transition look like?

Q: Smooth onboarding, ongoing consultative support is something Dealertrack DMS clients expect from our partnership. How is Netchex meeting this standard?

A: Well, I pointed to this in the earlier question, and I’ll share some more detail. Netchex has created Dealer-specific onboarding and service teams. These associates wake up each day and only think, act and work in the dealership world. This allows for deep understanding of need and more importantly, the ability to consult at a high level with Dealertrack DMS customers. Sharing best practices, as well as guidance away from potential pitfalls, is cornerstone to our service delivery. With over 1,000 Dealertrack rooftops installed, Netchex has the experience and understanding of dealer service expectations.

How does Integrated Payroll, powered by Netchex, save time?

Q: Let’s talk about time-savers. How does the integration between Dealertrack’s DMS and Netchex benefit dealership staff from day one and day-to-day? What time-savers are users now taking advantage of?

A: When designing the integration for Dealertrack DMS and Netchex, we focused on the pinch points that are time-sensitive, volume intensive, and critical for accuracy. Pay has to be correct and on-time. Moving critical pay data like commissions and Tech Time in an automated fashion not only saves administrators tons of time, it provides peace of mind that it is accurate. On the back end of payroll, GL integration is critical for dealers to close jobs as well as their books. Making this a key component of our integration strategy has been well received and a big win for dealers. One dealer, Budd Baer Auto Group, estimated we saved them 4 days of work every month.

What improvements are being made?

Q: Have any enhancements or improvements to the solution been made since the partnership was announced, and what is planned for 2022?

A: Netchex and Dealertrack DMS are consistently eliciting feedback from clients to ensure the best experience. Whether it’s enhancing reporting capabilities around Tech Proficiency or Monthly accruals or even application workflow within Netchex, we not only listen—we deliver. Our journey to create the best experience isn’t over, either – we have new solutions and services planned for 2022 all coming from client feedback.

Simply by switching to Netchex, Lawley Auto Group’s entire hiring and onboarding process was streamlined so that hiring managers won a ton of time back in their day, and new hires now spend their first day doing the job they were hired to do. – Will Boudreaux, Netchex CEO

Where’s the proof?

Q: Can you share any anecdotes or success stories from your experience switching dealerships over to Netchex?

A: Lawley Auto Group is a favorite of ours. They’re multi-state, multi-location and came in with struggles related to onboarding, timecards, and manual accounting processes. An employee’s first day was spent filling out paperwork, timecard edits for 250 employees was taking a full 8-hour workday. Plus it took a lot of  time for every location to sign-off on the payroll, and managing Tech Time was always a struggle. Simply by switching to Netchex, Lawley Auto Group’s entire hiring and onboarding process was streamlined so that hiring managers won a ton of time back in their day, and new hires now spend their first day doing the job they were hired to do. Our mobile app timekeeping means significantly fewer errors on timecards, plus remote approval for all the locations. And the integrated payroll handles Tech Time automatically. We’ve saved them several hours each week, and of course, the thousands of dollars associated with that time.

Dealers asking “why now,” before switching to an integrated payroll technology must consider the benefits and challenges associated with making the move. And, the longer you wait, the benefits of time savings, better onboarding, and year-end reporting begin to vanish. Upgrading your payroll process and technology is a critical need for your business. The accelerated digital landscape is here to stay. And your dealership’s most critical and largest expense—your payroll—simply must keep up.

WANT TO LEARN MORE ABOUT INTEGRATED PAYROLL AND HR MANAGEMENT FROM DEALERTRACK DMS? CLICK HERE TO SEE HOW YOUR DEALERSHIP COULD BENEFIT.

 

Will Boudreaux, CEO of Netchex

Will Boudreaux is the founder and CEO of Netchex – the fastest-growing payroll services company in the country. Technology-centric but service-driven Netchex has become a leader in the Human Capital Management industry.

Will launched Netchex in 2003 based on an innovative vision of how deliver solutions in the payroll services industry.

Key Results From Integrated Payroll Tech

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When Neal Jackson, accounting manager at Lawley Auto Group, decided to upgrade the payroll process and technology in his multi-state, multi-location dealership, he went looking for a solution that met certain requirements. It needed to keep his dealership in compliance, save time, and reduce the amount of manual adjusting his team always took on to get the job done right. What he discovered was a modern, integrated payroll solution that worked directly with his Dealer Management System. Jackson, an “early adopter” of the technology, was ready to dive in and give it a try. Here are four key results that Jackson and Lawley Auto Group uncovered as a result.

1 – Tech Time in No Time

When dealers talk about the key challenges of managing payroll within their dealership, Tech Time is usually at the top of the list. Variable rates of pay, managing commissions, and calculating costs always make the process of managing payroll more complex. “Tech Time has been a huge, huge time-saver for me. And one of the reasons is that we’re semi-monthly and one of those Tech Time conversions happens at month-end,” explains Jackson. With integrated payroll, Tech Time is automated, saving accounting teams hours upon hours each week. And those hours add up to serious cost-savings in time.

2 – No More Manual Paperwork

Jackson found himself manually adjusting payroll each month for eight different locations in his automotive group. With different state tax laws, over 250 employees, and only a small team of three employees to help him, the conversion process could take hours (and sometimes days). “It was very hard to get reports out of payroll in a manner that was usable. So, I spent a lot of time taking reports out of Dealertrack and converting them into an excel file. And that was pretty time-consuming due to all the noise that was in them,” Jackson explains.

3 – Streamlined Onboarding Processes

Hiring, staffing, and onboarding is just the tip of the iceberg for human resource teams. In an industry facing an almost 80% turnover rate, getting your team up-to-speed with a fast and efficient process is key. “Simply by switching to Netchex, Lawley Auto Group’s entire hiring and onboarding process was streamlined so that hiring managers won a ton of time back in their day, and new hires now spend their first day doing the job they were hired to do,” explains Will Boudreaux, CEO of Netchex.

4 – Free to Focus on What Matters

When Lawley Auto Group began to see the time savings take effect upon the implementation of an integrated payroll system, something amazing happened. He was able to convert a full-time payroll position into a part-time clerk, freeing her to focus on other areas of growth within the dealership.

To learn more, download a copy of the Lawley Auto Group Story here.

WANT TO LEARN MORE ABOUT INTEGRATED PAYROLL AND HR MANAGEMENT FROM DEALERTRACK DMS? CLICK HERE TO SEE HOW YOUR DEALERSHIP COULD BENEFIT.